Price to Earnings (P/E)
since 2012
Calculation
Kraft Foods Group Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 19, 2015 | 36.18 | = | 64.17 | ÷ | 1.77 | 1.77 | = | 1,043 | ÷ | 587,988,695 | |
| Feb 21, 2014 | 12.10 | = | 55.09 | ÷ | 4.55 | 4.55 | = | 2,715 | ÷ | 596,311,563 | |
| Mar 21, 2013 | 18.67 | = | 51.66 | ÷ | 2.77 | 2.77 | = | 1,642 | ÷ | 593,372,593 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Kraft Foods Group Inc. Annual Report.
- Share Price
- The share price exhibited a steady upward trend over the analyzed periods. It increased from $51.66 in March 2013 to $55.09 in February 2014, followed by a more significant rise to $64.17 by February 2015, indicating growing market confidence or positive sentiment toward the stock.
- Earnings Per Share (EPS)
- EPS showed a notable increase from $2.77 in March 2013 to $4.55 in February 2014, reflecting improved profitability during this period. However, there was a sharp decline to $1.77 by February 2015, suggesting a decrease in net earnings or potential challenges impacting profitability in the latest year.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio decreased substantially from 18.67 in March 2013 to 12.1 in February 2014, likely a result of the substantial EPS growth outpacing share price appreciation. By February 2015, the P/E ratio increased dramatically to 36.18, despite a rise in share price, largely driven by the significant drop in earnings per share. This elevated P/E ratio may imply that the stock price was relatively high compared to earnings, possibly reflecting market expectations of future earnings recovery or growth.
Comparison to Competitors
Kraft Foods Group Inc., P/E, long-term trends, comparison to competitors
| Kraft Foods Group Inc. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Feb 19, 2015 | 36.18 | 26.62 | 25.06 |
| Feb 21, 2014 | 12.10 | 34.54 | 22.64 |
| Mar 21, 2013 | 18.67 | 59.24 | 19.06 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
Comparison to Sector (Consumer Durables & Apparel)
Kraft Foods Group Inc., P/E, long-term trends, comparison to sector (consumer durables & apparel)
| Kraft Foods Group Inc. | Consumer Durables & Apparel | |
|---|---|---|
| Feb 19, 2015 | 36.18 | 25.21 |
| Feb 21, 2014 | 12.10 | 23.81 |
| Mar 21, 2013 | 18.67 | 22.14 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
Comparison to Industry (Consumer Discretionary)
Kraft Foods Group Inc., P/E, long-term trends, comparison to industry (consumer discretionary)
| Kraft Foods Group Inc. | Consumer Discretionary | |
|---|---|---|
| Feb 19, 2015 | 36.18 | 29.48 |
| Feb 21, 2014 | 12.10 | 26.50 |
| Mar 21, 2013 | 18.67 | 20.90 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).